Business, 06.06.2020 16:59 rosieposie27
On July 1, 2020, Bonita Inc. made two sales. 1. It sold land having a fair value of $915,580 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,440,678. The land is carried on Bonita's books at a cost of $598,400. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $406,500 (interest payable annually). Bonita Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Bonita Inc. for the sales transactions above that took place on July 1, 2020.
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On July 1, 2020, Bonita Inc. made two sales. 1. It sold land having a fair value of $915,580 in exch...
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